Farmworkers initially demanded a R150 daily wage hike, which they claim was more than double their daily payment of R69.

This amounts to R11,66 per hour or R525 a week.

Minimum wages will be reassessed in 2014 and 2015, in line with inflation.

Farmworkers affiliated to the Congress of South African Trade Unions (Cosatu) and the Building and Allied Workers Union of South Africa (Bawusa) were adamant they would continue to protest until their wage demands were met.

But the strikes were suspended two weeks ago.

The hike will come into effect from March 1.

Oliphant said those farmers who cannot afford to increase wages must prove it.

"In terms of the law, people can apply for the exemption provided they submit proof. One of the things we want is proof of financial statements, so we have a guarantee that the person can't afford payment."

The minister said that according to research, there is the threat of job losses stemming from the pay hike.